LLCs

An LLC, or Limited Liability Company, is a type of business structure that combines the limited liability protection of a corporation with the tax benefits and operational flexibility of a partnership or sole proprietorship. Many of our clients elect to form an LLC to hold investment real estate, such as rental properties, to protect their personal assets from any liabilities stemming from LLC’s assets.

Here are some key features and benefits of an LLC:

1. Limited Liability Protection: Owners (referred to as members) are typically not personally responsible for the company’s debts and liabilities. This means that personal assets are generally protected if the business incurs debt or is sued.
2. Pass-Through Taxation: Profits and losses can be passed through to members’ personal income without facing corporate taxes. This avoids the double taxation that can occur with traditional corporations, where the business pays corporate taxes, and shareholders also pay taxes on dividends.
3. Flexibility in Management: LLCs can be managed by members or by appointed managers. This allows for flexible management structures compared to corporations, which require a board of directors.
4. Operational Flexibility: LLCs have fewer formalities and regulatory requirements, making them easier to maintain.
5. Profit Distribution Flexibility: Members of an LLC can decide how to distribute profits among themselves, which doesn’t necessarily have to be in proportion to their ownership percentages.
6. Varied Ownership: LLCs can have an unlimited number of members, and those members can include individuals, corporations, other LLCs, and even foreign entities.
7. Credibility and Professionalism: Forming an LLC can enhance the credibility and professionalism of your business, as it signifies a legitimate and established entity.

How can DAL Law Firm help you in forming your LLC?

In hiring our office to create your LLC, we handle everything in the formation process for you, including:

• Confirming your desired name is available with the State of Washington;
• Prepare your Operating Agreement;
• Filing your Articles of incorporation with the State of Washington;
• Obtain your Certificate of Formation with the State of Washington;
• Obtain the EIN for the LLC;
• Transfer your real estate into your newly formed LLC; and
• Serve as your Registered Agent

Here are some video resources to answer some common questions our clients have about LLCs: LLC Videos

If you need assistance forming your LLC, text or call us at 206-408-8158 or you can email our office at [email protected].